Annual report 2010 - Imperial Tobacco Group

9 Intangible Assets2010£ million Goodwill TrademarksSupplyagreements Software TotalCostAt 1 October 2009 13,696 7,782 1,759 102 23,339Acquisition accounting adjustment (41) – – – (41)Additions – – – 14 14Disposals – – – (2) (2)Exchange movements (579) (281) (86) (1) (947)At 30 September 2010 13,076 7,501 1,673 113 22,363Amortisation and impairmentAt 1 October 2009 21 612 299 50 982Amortisation charge for the year – 281 170 17 468Disposals – – – (1) (1)Exchange movements – (9) (16) (2) (27)At 30 September 2010 21 884 453 64 1,422Net book valueAt 30 September 2010 13,055 6,617 1,220 49 20,9412009£ million Goodwill TrademarksSupplyagreements Software TotalCostAt 1 October 2008 11,896 6,744 1,519 95 20,254Additions – 1 3 8 12Disposals – – – (1) (1)Exchange movements 1,800 1,037 237 – 3,074At 30 September 2009 13,696 7,782 1,759 102 23,339Amortisation and impairmentAt 1 October 2008 21 277 105 34 437Amortisation charge for the year – 281 170 17 468Disposals – – – (1) (1)Exchange movements – 54 24 – 78At 30 September 2009 21 612 299 50 982Net book valueAt 30 September 2009 13,675 7,170 1,460 52 22,357Intangible amortisation and impairment are included within administrative and other expenses in the consolidatedincome statement.Supply agreements includes Logistics customer relationships and exclusive supply arrangements in Cuba and Morocco,all acquired under the purchase of Altadis.The £41 million reduction in goodwill in 2010 reflects an adjustment in respect of the Reemtsma acquisition and is morefully described in note 29.Amortisation and impairment in respect of acquired intangible assets are treated as reconciling items between reportedoperating profit and adjusted operating profit. The adjustment comprises the amortisation and impairment charges inrespect of goodwill, trademarks and supply agreements.119